USDA Expands Microloans To Help New Growers Gain Access To Land
January 19, 2016 USDA announced today it will begin offering farm ownership microloans, creating a new financing avenue for farmers to buy and improve property. These microloans will be especially helpful to beginning or underserved farmers, U.S. veterans looking for a career in farming, and those who have small and mid-sized farming operations.
“Many producers, especially new and underserved farmers, tell us that access to land is one of the biggest challenges they face in establishing and growing their own farming operation,” Krysta Harden, USDA Deputy Secretary said. “USDA is making it easier for new farmers to hit the ground running and get access to the land they need to establish their farms or improve their property.”
The microloan program, which celebrates its third anniversary this week, has been hugely successful, providing more than 16,800 low-interest loans, totaling more than $373 million to producers across the country. Microloans have helped farmers and ranchers with operating costs, such as feed, fertilizer, tools, fencing, equipment, and living expenses since 2013. Seventy percent of loans have gone to new farmers.
Now, microloans also will be available to also help with farm land and building purchases, and soil and water conservation improvements. USDA’s Farm Service Agency (FSA) designed the expanded program to simplify the application process, expand eligibility requirements and expedite smaller real estate loans to help farmers strengthen their operations. Microloans provide up to $50,000 to qualified producers, and can be issued to the applicant directly from the FSA.
